Whether it's atmosphere, staff camaraderie, seniority or resistance to change, there are lots of reasons why workers decide to stay with a company for the long haul. At the same time, there are an equivalent number of justifications for deciding to move on, be it the desire for something different, a new opportunity or dissatisfaction with a current position.
But according to a new poll, one of the more common reasons business owners have been told by their workers that they're leaving the company has to do with the almighty dollar.
In the last 12 months, roughly 1 in 4 business owners say that they've lost a good employee to another company that paid a higher salary, according to a recent survey conducted by staffing firm Robert Half. In February, approximately 2.7 million people quit their jobs, based on data from the U.S. Bureau of Labor Statistics. This suggests that the economy is improving because people are pursuing other lines of work now that more people are hiring.
Paul McDonald, Robert Half senior executive, indicated that workers are taking advantage of the current job climate. This is putting more pressure on companies to make it in their employees' interest to stay loyal.
"To attract and retain employees, businesses must proactively benchmark salaries and ensure they are offering competitive pay," said McDonald.
He added that if managers can't remember the last time that they evaluated their employee benefits or wages, then it's high time to do so.
It's not surprising that workers leave for better pay or benefits, according to business owners polled. When asked what factors they could see their good workers seriously considering that would warrant a career or job change, near 30 percent pointed to earnings, the Robert Half survey revealed. Among employers, close to 40 percent cited this as the leading justification. Both business owners and workers noted insufficient salary and benefits to be the most likely cause for moving on. Other influential considerations included unhappiness with management, lack of advancement opportunities, boredom and burnout.
Employee engagement affects perceptions
Though wages may be one of the more influential components in employees deciding to stay with a company or seek a change in venue, engagement is also a deciding factor, according to separate polling data. In a survey conducted by Aon Hewitt, 60 percent of engaged employees – those who felt like they were a key part of their work environment and were enthusiastic about what they and their company produced – indicated that what benefits their employer offered were more generous than what was typical. For the disengaged, less than 1 in 4 felt the same way.
"While we consistently see employees ranking pay as the most valuable reward they earn from their employer, it's not the only thing that matters," said Ray Baumruk, Aon Hewitt employee research leader. "Engaged employees value a more balanced, less oriented toward pay-only, rewards package compared to those who are disengaged."
He added that it's a good idea for business owners to more fully explain to their workers what their benefits include, as based on the survey, those who were less familiar with what they included were more inclined to say that there was nothing particularly special about them.
